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Commissioning meaning

What does Commissioning mean?
Commissioning is the process, carried out before handover to the employer, of setting to work, testing, adjusting and verifying that installed systems—especially mechanical, electrical and other technical installations—operate correctly and achieve the performance requirements stated in the contract documents and specifications. It is an industry term used across construction and engineering contracts rather than a term generally defined by legislation or case law, although Building Regulations in England and Wales, Scotland, Northern Ireland and Ireland impose commissioning and certification duties for fixed building services. Key features include pre‑commissioning checks, functional and integrated systems testing (including testing and balancing), witness testing and demonstrations, preparation of commissioning plans and records, and delivery of O&M manuals and training. Commissioning responsibility, programmes, access, temporary supplies and pass/fail criteria should be allocated in the contract (for example under JCT or NEC forms). Commissioning usually precedes practical completion, but seasonal commissioning and fine‑tuning may continue after handover during the defects period. Proper commissioning is significant for compliance, health and safety, energy performance and usability; failure or delay can postpone practical completion, trigger liquidated damages, or affect manufacturer warranties.
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View the related Checklists about Commissioning

CHECKLISTS
Power purchase agreements with licensed suppliers: a practitioners’ checklist on term, pricing, volumes, renewable/embedded benefits, exclusivity, commissioning, metering, termination, guarantees and assignment

Power purchase agreements (PPAs), and the consequent checklist considerations, will differ according to several elements, such as the generation technology adopted and, notably, whether any feedstock or fuel is necessary to run the finished plant. The nature of the deal—be it a short-term trading arrangement or a longer-term contract required to support financing—will likewise be influential. This Checklist proceeds on the basis of a ‘conventional’ PPA with a licensed supplier as the counterparty. Other forms exist, including corporate PPAs where the buyer is an end user, potentially linked to the plant by a private wire. For additional detail on corporate PPAs, see Practice Note: Corporate Power Purchase Agreements—an introduction to structuring power purchase arrangements between large energy users and remotely located generators. What is/check the duration of the agreement? Where a PPA is needed to underpin external financing for a new generating asset, the PPA term should, as far as practicable, ideally align with the tenor of any loans advanced to fund the scheme and the associated project...

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NEWS
PI and Clinical Negligence Update: key case law (psychiatric injury, Animals Act, anonymity), QOCS and costs; MoJ CFO rate cut; CPRC minutes; NHS Resolution–CQC MoU; new regulations

In this issue: Key PI and Clinical negligence developments Civil procedure rule committee minutes Psychiatric and occupational stress Injuries caused by animals Claims involving a child Claims involving a fatality Costs and funding Other PI and Clinical negligence news LexTalk® PI & Clinical Negligence: a Lexis®Nexis community Daily and weekly news alerts LexisNexis® Webinars Useful information Key PI and Clinical negligence developments MoJ announces reduction in CFO’s interest rates The Ministry of Justice (MoJ) has confirmed reduced interest rates for the Courts Funds Office (CFO) special and basic accounts. The special account rate moves from 4.75% to 4.50%, while the basic account rate shifts from 3.56% to 3.38%. Effective from 3 March 2025, the revision follows the Bank of England’s base rate cut on 6 February 2025 and is intended to ensure the CFO Service can continue to cover operational costs. See: LNB News 04/03/2025 38...

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NEWS
EU considers regulating AI‑enabled automated contracting: studies underway, potential Digital Fairness Act reforms, and alignment with forthcoming UNCITRAL model law

An automated contract might see a smart refrigerator reorder milk the moment supplies run dry, or a production line seek out a missing part without a person placing the order. Yet this emerging method of contracting is already stirring considerable debate among policymakers and legal scholars. Conventional contract law has long presumed that people alone took the decisions. Consequently, the EU executive is weighing a possible regulatory response. The initiative remains at a very nascent stage, with officials commissioning a study ‘on novel forms of contracting in the digital economy’ and collecting broad stakeholder views, MLex has learnt. According to a letter from the Commission inviting a stakeholder’s input, seen by MLex, ‘the study assesses how far existing legal frameworks can support business models that use AI in contracting, while delivering legal certainty for companies and protecting the rights of all stakeholders’...

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NEWS
UK FTT (Tax): LLP was trading for Business Asset Disposal Relief; Mansell test met despite no sales until 2019 (Wardle v HMRC [2024] UKFTT 543 (TC))

Wardle v HMRC [2024] UKFTT 543 (TC) The taxpayer held a 15% stake in the LLP, established in June 2015 as a special-purpose vehicle created to build and operate a power plant in Hull. In August 2015, the LLP raised an unsecured loan from a funder and proceeded to enter into more than 50 contracts with a range of counterparties concerning construction, operation and financing of the plant. During 2016, the LLP applied to the Environment Agency for a permit to operate the plant, and that authorisation was granted in May 2017. Commissioning of the plant was formally certified as complete in March 2018; however, no electricity was generated on a commercial basis until June 2019. The taxpayer then disposed of his interest in the LLP in February 2020. He claimed entrepreneurs’ relief in respect of that disposal but, following an enquiry, HMRC refused the claim. HMRC’s stance was that the LLP was not trading throughout the two years immediately preceding the disposal because it had not...

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View the related Practice Notes about Commissioning

PRACTICE NOTES
UK Film and Television Law Glossary: Terms C–D—copyright, collecting societies, broadcasting, distribution

Film and TV glossary A–B Film and TV glossary E–H Film and TV glossary I–L Film and TV glossary M–P Film and TV glossary R–S Film and TV glossary T–W CAP Code for non-broadcast media The UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (the CAP Code) serves as the principal framework governing non-broadcast adverts, promotional sales activity and direct marketing messages. It is drafted by the Committee on Advertising Practice (CAP), a self-regulatory body whose membership comprises organisations representing advertising, sales promotion, direct marketing and media industries. The Advertising Standards Authority (ASA) polices the CAP Code and may require the withdrawal or amendment of any advertisement that contravenes these standards. Refer to Practice Note: Advertising law and regulation. Channel 4 Channel 4 operates as a ‘publisher-broadcaster’: it produces no programmes internally, commissioning content from production companies across the UK. Cinematograph film Under the Copyright Act 1956 (CA 1956), films gained protection as...

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PRACTICE NOTES
IChemE Burgundy Book 2nd Edition: target cost process plant contracts; key provisions on cost control, pain/gain sharing, testing, insurance, termination, liability caps, payment and disputes, with 2025 AI guidance

This practice note addresses the 2nd Edition of the Burgundy Book, released in 2013, with particular emphasis on its role as a target cost form. In line with all IChemE agreements, the Burgundy Book contains thorough requirements for testing at completion and for commissioning, making it especially well suited to process engineering sectors such as nuclear, water, petrochemicals, and food. The suite adopts an almost entirely uniform structure across clauses, presentation and schedules. Departure from the standard drafting occurs only where needed to set out the mechanism delivering the risk/reward regime—in this instance, remuneration on a target cost footing. See also Practice Notes: IChemE Conditions 5th Edition—‘Red Book’ and IChemE Conditions ‘Green Book’ 4th Edition. Nature of Target Cost Contracts Target cost denotes that the contractor receives payment of the ‘actual cost’ it incurs (as defined), akin to a reimbursable arrangement but constrained by an agreed target cost. Where the actual cost surpasses the target, any additional sum payable to the contractor is reduced—often to nil. If the...

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PRACTICE NOTES
Expert Evidence in Private Law Children Proceedings: Law, Procedure, Standards, SJEs, Reports, Attendance and Funding (FPR 2010 Pt 25; CFA 2014 s13) (England and Wales)

Adducing expert evidence in private law children proceedings This Practice Note addresses the presentation of expert evidence in private law children cases, setting out the statutory framework (in particular Part 25 of the Family Procedure Rules 2010 (FPR 2010) and the associated Practice Directions) and also clarifying who qualifies as an expert. It further explores when such evidence is required, the process for seeking permission and the considerations the court must weigh when deciding that application, together with the commissioning of experts, including use of a single joint expert (SJE), and the arrangements for paying the expert’s fees. It also outlines experts’ obligations and the expectation that they attend court. In addition, it explains the need for any expert in children proceedings to satisfy the relevant national standards for experts. For hands-on guidance on evidence in private law children cases, see Practice Note: Evidence in private law children proceedings. At common law, witnesses are to testify to facts rather than opinions, unless the witness is suitably qualified to give...

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View the related Precedents about Commissioning

PRECEDENTS
Law firm Attendance Review Meeting (ARM) plan and checklist: sickness absence, medical evidence, Occupational Health, reasonable adjustments and risk assessment

Action Notes Review earlier RTWI/ARM paperwork to identify: the employee’s health condition(s); treatments currently underway; medicines being taken; advice from the most recent RTWI/ARM; arrangements for a GP medical report; arrangements for any private medical examination; commissioning of an Occupational Health report; conclusions from medical reports/examinations; the medical practitioner’s longer-term prognosis; reasonable adjustments made or proposed; how those adjustments affect the firm; any risk assessment completed; results of that risk assessment; how outcomes have been applied to the employee’s role. Examine absence data and confirm: the employee’s present absence rate; comparison with the firm’s target absence rate; the expected change in absence going forward (considering the practitioner’s prognosis). Consult firm records regarding: the effect of the employee’s absence on their work and the firm; the firm’s capacity to manage the absence now and in future. ...

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PRECEDENTS
Precedent Commissioning Letter for Audiovisual Development Material: Fee, Delivery, Copyright Assignment, Performers’ Property Rights, Clearances, Warranties and Standard Conditions

From: [ name ] of [ address ] (the Company) To: [ name ] of [ address ] (the Producer) Dated: [ date ] Dear [ insert organisation name ] [ name of project ] This letter (the Commissioning Letter) confirms the terms and conditions of the agreement we have reached in relation to the creation of specified development material for the proposed [ describe nature of proposed production ], derived from the outline enclosed at Schedule 1 with the above provisional title ([ describe nature of proposed audiovisual work ]) (Outline), which the Company intends to produce but gives no undertaking to do so. 1 The Company appoints the Producer under the Company’s standard development terms and conditions (Standard Conditions), as set out in Schedule 3, to create and supply to the Company, by the respective dates stated in Schedule 2 (Delivery Dates), the development material detailed in Schedule 2 (Development Material)...

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